Problem for Illustration:

On September 2007, Tom Cruise organized a business called

“Friend With A Truck” for the purpose of operating an equipment
rental yard. The new business was able to begin operations
immediately. Therefore, the following transactions have occurred
during September 2007:

Sept. 1: Tom Cruise deposited $100,000 cash in a bank account in

the name of the business, Friend With A Truck.
Sept. 1: Paid $9,000 to Shapiro Realty as three months’ advance
rent on the rental yard and office, on the basis of $3,000 a month
starting from September 2007.
Sept. 1: Purchased equipment of $180,000 from Royal Machinery
Company. Paid $70,000 cash and issued a one-year note payable
for the rest.
Sept. 4: Purchased office supplies on account from Modern Office
Co. of $1,630.
Sept. 8: Received $10,000 cash from McBryan Construction Co.
as advance payment on rental equipment.
Sept. 14: Paid salaries for the first two weeks in September of
$3,600.
Sept. 15: Excluding the McBryan advance payment, equipment
rental fees earned during the first 15 days of September amounted
to $6,100, of which $5,300 was received in cash.
Sept. 17: Purchased on account from Earth Movers, Inc., parts
needed to repair a rental tractor of $340, payment is due in 10
days.
Sept. 23: Collected $210 of the accounts receivable recorded on
September 15.
Sept. 25: Paid the account payable to Earth Movers, Inc., $340.
Sept. 30: Equipment rental fees earned from the advance payment
made on September 8 from McBryan Construction Co. was equal
to $5,500.
Required:
1. Journalize the above transactions.
2. Post to ledger accounts (show the ending balances).
3. Prepare the unadjusted trial balance.